As April 30th is approaching, many people are thinking of tax planning options in order to reduce the amount of tax that they must pay.  A common method of tax planning is income splitting; this method is done by the high-income family member (transferor) diverting their investment income to low-income family members (transferee) by gifting…

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There are always predictions about what tax changes will be included in the federal government’s annual budget.  Like many times in the last several years, there is speculation that the capital gains inclusion rate will increase from 50% to 75%.  This concern has gained renewed traction in the current year, due to the current Liberal…

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Do you have a registered RRSP/RRIF/TFSA account? Do you also have a non-registered investment account? If your answer was ‘yes’ for both the questions, you could potentially increase the value of your registered account and defer the incremental taxes by paying all your fees from the non-registered account. There are various benefits to paying your…

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Recently a teacher located in Ottawa won his case with the Canada Revenue Agency (CRA) to be able to deduct his moving expenses from Whitby to Ottawa for 2014.  The reason that it took almost 5 years to win his case was because his mode of transportation was a canoe. See the full article here:…

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It is almost the end of the year and the thought of completing your tax return starts to pop up for everyone, whether it be paying extra or expecting a refund. Although most of us realize that paying taxes is part of life and essential to ensure that we continue with our current lifestyles, we…

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For anyone turning 65 in the upcoming year, the information below may help you in enrolling in the Canadian Old Age Security (OAS) pension. Also, below are some tax planning tips that will enable you to take full advantage of the program, including how to decide if deferring the receipt of the OAS will be…

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At one point or another, most people have thought about renting out the extra rooms in their home to earn some additional cash. CRA has specific rules for when tax payers wish to turn their current residential home into a rental home and vice-versa. If not carefully reviewed, there can be unfavorable results for the…

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A Tax-Free Savings Account (TFSA) is a registered investment plan that has beneficial tax treatment.  A TFSA differs from an RRSP in that the contributions to the TFSA are not deductible, but all of the income earned by investments in a TFSA is not taxable, including when the investments are withdrawn.  In an RRSP, contributions…

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Not long ago we talked to a client who received a phone call from someone claiming to be the Canada Revenue Agency (CRA).  If our client didn’t pay up immediately by providing their financial information – “CRA” claimed they were going to go to jail!  This was a scam, and thankfully our client realized this. …

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The federal and Ontario governments are currently offering employers of apprentices tax credits with respect to the apprentices’ wages.   The federal tax credit is equal to 10% of the eligible salaries and wages paid to the eligible apprentices in respect of their employment. There is a maximum credit for each apprentice of $2,000 per…

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